Keeping Perspective on Investing

Keeping Perspective on Investing

Yes, the last year was not great in helping create and maintain your wealth, however, remember, 2014 was a good year for the marketsand the 4th consecutive year for positive US stock market returns. In fact, 2014 was a volatile year too with 6 market declines ranging from ~ 3-8%. The majority of aggregate portfolios, including cash and bond positions, ended up approximately 5 to 10% net of fees in 2014, depending on Investment Model. Moreover, most portfolios are up very nicely over the last 3 years, even when including 2015’s negative return! Since 2008, the broad market has been up 5 of the last 7 years.

It’s important to keep in mind your Annual Target Investment Return Average; what one needs vs desires for investment gains are generally two different things. Also, we emphasize average as returns fluctuate year to year. We keep risk in the context of each client’s tolerance and overall financial planning need to take risk. We want to manage risk - besides death and taxes, market volatility and even declines are a sure thing!

Disclaimer

Maxele Advisors may only transact business with Missouri and Illinois residents or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements